Issue 28 – Rate Increase

Issue 28 – Rate Increase

On July 12, 2017, the Bank of Canada (BOC) raised interest rates for the first time in seven years and there is a high probability of a second hike by year-end. The income funds are well-positioned to take advantage of the new interest rate environment. Historically, the materials, industrials, and financials stocks outperformed the broader market under such circumstances.